Leading medical diagnostics provider Sonic Healthcare has taken a strategic 19.99 per cent stake in Microba Life Sciences.
Sonic's $17.8 million investment is complemented by the planned acquisition of options for an additional 5 per cent equity position, subject to shareholder approval.
Exercise of the options would result in a further investment of $7.5 million in Microba.
Sonic has also agreed to initial binding terms for a strategic alliance to deliver Microba's microbiome testing technology in Australia, New Zealand, Germany, the United Kingdom, Belgium, Switzerland and the US.
Microba's CEO Dr Luke Reid said, "We are excited to have Sonic Healthcare, a global leader in healthcare, become a major strategic shareholder and partner. Sonic is globally respected for its leadership in delivering trusted medical diagnostic services, and our partnership deeply aligns the interests of both companies to bring microbiome testing and therapeutics into the hands of clinicians and patients globally to improve standard of care.
"This strategic partnership with Sonic is set to accelerate international distribution of Microba's microbiome testing into primary and specialist healthcare, and move our testing deeper into routine patient management."
Sonic Healthcare's CEO Dr Colin Goldschmidt said, "Sonic Healthcare prides itself on delivering accurate, reliable medical diagnostics services using leading laboratory and informatics technologies. Our partnership with Microba exemplifies our commitment to invest in cutting edge developments in laboratory medicine. We see microbiome testing becoming a key part of pathology over coming years and are excited about the potential of this partnership and the opportunities that Microba's technology will provide for Sonic's global operations, our referring clinicians, and our patients."
Sonic Healthcare's chief medical officer, Dr Stephen Fairy, will join Microba's medical advisory board.
